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Since 1980 the Society for Information Management (SIM) has conducted a survey of its senior IT executive members to gauge trends within the IT industry. SIM's members are among the most accomplished and innovative leaders in IT, so their responses help to benchmark various areas such as major management issues, largest and most worrisome IT investments, sourcing, CIO roles, staffing, spending, and salaries. SIM's IT Trends Study is widely recognized as one of the most representative barometers of the information technology industry. More information at http://www.simnet.org/?ITTrendsStudy.
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34th Annual Society for Information Management’s
34th Annual Society for Information Management’s
Research Team PresentersResearch Team PresentersLeon Kappelman, University of North Texas
Jerry Luftman, Global Institute for IT ManagementEphraim McLean, Georgia State University
CIO Discussion PanelistsSue Bergamo, former CIO, Net Atlantic, Inc.Rick Broughton, CIO, MKS Instruments, Inc.Janis O’Bryan CIO Hudson Advisors LLCJanis O Bryan, CIO, Hudson Advisors LLC
SIMposium 2013, Boston, 11‐November
SIM IT Trends Survey TeamLeon Kappelman University of North TexasLeon Kappelman, University of North Texas
Ephraim McLean, Georgia State University
Jerry Luftman, Global Institute for IT Management
Vess Johnson, University of North Texas
Bill Peterson, LiquidHub
Barbara Stewart, Celanese
3
Barbara Stewart, Celanese
Natalie Gerhart, University of North Texas
Walter Rich, Georgia State University
A note about the respondents and responses used in this slide deck.
Respondents: Who are they? Two overlapping subsets of the total set of respondents to the 2013 SIM IT Trends Study are used These aretotal set of respondents to the 2013 SIM IT Trends Study are used. These are denoted as “Senior IT Leader” or “CIO”:
• “Senior IT Leaders“ = The highest‐ranking IT person who responded from each of 484 unique organizations.
• “CIO” or equivalent = top IT person in 285 organizations
Responses: How many are there? The number of responses (n) to each question is also noted on each slide.(n) to each question is also noted on each slide.
4(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Briefly describe the 484Briefly describe the 484 unique organizations thatunique organizations that participated in the study …participated in the study …
Organization’s industry or economic sectorSenior IT Leader
14.26%
10.74%
10.74%
7.02%
Financial Services / InsuranceHealthcare/Medical
ManufacturingEducation
G
Top 3 36%
Top 5 49%5.79%
5.37%
5.37%
5.17%
4 55%
GovernmentIT Services / Consulting
Retail/WholesaleNot‐For‐Profit ‐ Public Sector
Business Professional Services
Top 5 49%
4.55%
3.72%
3.10%
2.69%
2.48%
Business Professional ServicesEnergy
Transportation/DistributionConsumer Goods
Media / Entertainment
Top 10 73%
2.48%
2.27%
1.86%
1.65%
1.65%
Media / EntertainmentTech
Chemical IndustryConstruction
Other
Top 15 85%
1.45%
1.24%
1.24%
1.24%
Hospitality/Travel/LeisureMedical Technology / BioMedical
Real EstateUtilities
Top 20 92%
1.03%
1.03%
1.03%
0.83%
Aerospace / DefenseElectronics / Semiconductor
TelecommunicationsAgriculture
0.83%
0.62%
0.62%
0.41%
AutomotiveFood Services
Printing / PublishingMining / Minerals
484 Responses
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
What is the total revenue of your organization (in US $)?Senior IT Leader
10%> 10‐100B 38% have revenue of $1 billi
7%> 5‐10Bover $1 billion
21%
12%
> 1‐5B
> 500M 1B
Avg. = $4.36 Billion
12%
24%
> 500M‐1B
> 100‐500MMedian = $502.5 Million
9%> 50‐100M26% have revenue of
11%> 10‐50M6% a e e e ue o$100 million or less
7
6%0‐10M370 Responses
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
IT Spending as a Percent of Total Revenue (in US $)Senior IT Leader – Percent Responding
p g ( $)
10%>10%
3%
3%
2%
7‐8%8‐9%9‐10%
24% spend more than 5% on IT>
>
>
4%
2%
3%
5‐6%6‐7%7 8%
47% spend 2% or less on IT>
>>
11%
9%
9%
2 3%3‐4%4‐5% Avg. = 4.95%
>>
>
M di 2 24%
10%
12%
11%
1‐1.5%1.5‐2.0%
2‐3%>
>
> Median = 2.24%
7%
14%
10%
.1‐.5%.5‐1%1 1.5%>
>
8
4%0‐.1%332 Responses
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Total number of employees who work in your organizationSenior IT Leader
5%
4%
20000‐50000
>50000
>
8%
5%
5000‐10000
10000‐20000>
>Avg. = 8,629
8%
4%
5%
2000 3000
3000‐4000
4000‐5000
>
>
>
7%
12%
8%
750‐1000
1000‐2000
2000‐3000>
>
>
Median= 1,070
11%
5%
7%
250‐500
500‐750
750 1000
>
>
Median 1,070
8%
12%
50‐100
100‐250>
>
9
7%0‐50411 Responses
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Total number of employees who work in ITSenior IT Leader
6%> 1000 On average, IT employees = 6.78% of total employees
8%
3%
> 250‐500
> 500‐1000Avg. = 585
14%
8%
> 100‐250
> 250‐500
19%
15%
> 20 50
> 50‐100Median = 40
13%
19%
> 10‐20
> 20‐50
10%> 5‐1069% have 100 IT employees or less
10
12%0‐5411 Responses
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Senior IT LeaderIT Employees as a Percent of Total Employees
1%
9%
> 40‐50%
> 50%
p y p y
2%
3%
1%
> 20‐30%
> 30‐40%
> 40 50%6.78% = Mean IT employees / Mean total employees
7%
7%
> 7.5‐10%
> 10‐20% Avg. = 13.77%
10%
6%
10%
3 4%
> 4‐5%
> 5‐7.5%
Median = 3 37%
8%
16%
10%
> 1 5‐2 0%
> 2‐3%
> 3‐4% Median = 3.37%
8%
8%
8%
> .5‐1%
> 1‐1.5%
> 1.5‐2.0%45% have 3% or less
11
5%> 0‐.5%411 Responses
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Senior IT Leader
How is IT Organized in your Organization?g y gDecentralized
8%
Centralized 65%
Hybrid/Matrix 27%
65%
12
280 Responses
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
IT Organization Structure 2006‐2013Senior IT Leader
g
280 Responding organizations
13(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
What do we know about CIOs?What do we know about CIOs?
1. Where do CIOs come from?
2 H l h CIO h ld h i2. How long have CIOs held their current positions?p
3. To whom do CIOs report?
4. How do CIOs spend their time?
Last position before CIO or Equivalentid
Within Org Non IT 4 9%
Outside Org– Non‐IT, 4.2%
– Non‐IT , 4.9%
Within Org –IT Function,
31.6%
Outside Org –IT Function,
59 3%90.9% from an IT organization59.3% organization.
63.5% from outside the organization.
15
285 Responses
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Last position before CIO or Equivalent
61%
70% 57%
Last position before CIO or Equivalent
54%
61%
54%
59%
50%
60%
2010‐2013 average shown in boxes
38% 37%
32%40%
50%
2010
34.5%
31%32%
30% 2011
2012
2013
4% 4%4% 5% 5%5% 4%10%
20% 2013
4.5% 4%
4% 4%4% 3%5% 5%5% 4%
0%Within Org. IT
iOutside Org. IT
iWithin Org. Non‐ Outside Org Non‐
16
Function Function IT IT
2013 = 285 Responses
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Ti i C t P iti (i )CIO or Equivalent
5.96
Time in Current Position (in years)285 Responses
4.60
5.10
4.45
5.20 4.66 Avg. of yearly
3.60
4.10 4.30 y y
averages.
17
2006 2007 2008 2009 2010 2011 2012 2013
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
To Whom CIO or Equivalent Reports: 2013To Whom CIO or Equivalent Reports: 2013
44.7%CEO
27.1CFO
14.4%COO 14.4%COO
283 Respondents9.2%SBU
0.0% 10.0% 20.0% 30.0% 40.0% 50.0%
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
60%
CEO
To Whom CIO or Equivalent Reports: 2005‐2013
50%
CFOCOOBusiness Unit Executive
40%
44.7%CEO
30%27 1%
20%COO
27.1%CFO
10%
COO
14.4%
9 2%
0%
10%
BUE9.2%
0%2005 2006 2007 2008 2009 2010 2011 2012 2013
283 Respondents(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
How CIOs Spend Their Time (%)
14.2%
15.9%
Business priorities/strategy
IT priorities/strategy
12.3%
13.5%
Interacting with non‐IT, non‐C‐level
Interacting with internal IT employees
10 6%
11.6%
%
Interacting with non‐IT C‐level
IT operations
g ,
6 6%
6.8%
10.6%
IT governance
Interacting with IT vendors
Interacting with non IT, C level
5.6%
6.6%
IT human resources
IT governance
>45.4% interacting with others
>55.8% focused on IT matters
0.6%
2.4%
Other
Software development
>37.1% focused on business
20
164 Responses>36.7% on strategic activities
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
How CIOs spend their time
2013 CategoriesCIO or
EquivalentPrevious years:
How CIOs spend their time2007‐2012 Categories
2013 2012 2011 2010 2009 2008 2007
IT priorities/strategy 15.9% 12% 15% 13% 15% 17% 16% Strategy
Business priorities/strategy 14.2%p / gy 14.2%Interacting w/ internal IT employees 13.5% 13% 12% 11% 12% 15% 13% Relationship mgmnt
w/ IT staff
Interacting w/ non‐IT non C‐Level 12.3%IT Operations 11.6% 11% 12% 13% 15% 8% 8% Operations
Interacting w/ non‐IT C‐level 10.6% 24% 20% 18% 19% 26% 23% Relationship mgmntw/ business
Interacting with IT, non employees 6 8% 8% 7% 6% 0% 0% 0% Relationship mgmntte act g t , o e p oyees 6.8% 8% 7% 6% 0% 0% 0% w/ vendors
IT governance 6.6% 10% 9% 9% 10% 11% 11% IT governance
IT Human resources 5.6% 8% 7% 7% 8% 7% 8% Human resources
Software development 2.4% 6% 5% 6% 6% 4% 6% Software development
Other 0.6% 1% 7% 11% 10% 6% 7% Non‐IT
7% 6% 7% 7% 6% 8% Architecture
21
7% 6% 7% 7% 6% 8% Architecture
164 Responses(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
How do the 484 unique organizations utilize their IT
?resources?
hTo what extent are IT organizations using theorganizations using the “cloud” and “shared services”?cloud and shared services ?
Senior IT Leader
81% of organizations use ”the cloud”81% of organizations use the cloudOn average, 26.5% of all IT services are cloud‐based
Percent of cloud‐based IT services provided by …
Private/InternalPublic/ Internal cloud46%
Public/External cloud54%
24
260 Responses
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Senior IT Leader
70% of organizations deliver IT as shared service70% of organizations deliver IT as shared serviceOn average, 56.4% of all IT services are shared services
Percent of IT shared services provided by …
Public/External Cloud26.8%
Private/Internal
Cloud 73.2%
25
244 Responses
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
What are the trends in IT b d ?budgets?
IT Budget ChangeSenior IT Leader ‐ Percent of Organizations Reporting
D N Ch I
IT Budget ChangeActual 2012 to 2013
D N Ch I
Projected 2013 to 2014
Decrease No Change Increase Decrease No Change Increase
27%23%
27%
61% 12%65%
12%
382 Responses 364 ResponsesAverage increase Median
2013: 1.33% 2.0%
27
2013: 1.33% 2.0%2014: 1.48% 2.0%
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
IT Budget Trends: 2007‐13 Actual, 2014 ProjectedSenior IT Leader ‐ Percent of Respondents
65%61%61%
70%
IT Budget Trends: 2007 13 Actual, 2014 Projected
48%56%46%
52%
50%
60%
34%
28%
35%35%
40%
25%
27%31%
23%
28%
23%27%
26%
22%
20%
30%
12%12%
18%
23%
17% 17%10%
0%2014
Projected2013201220112010200920082007
Increase No Change DecreaseResponses: 2013 = 382 & 2014 = 364
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Percentage of Revenue Allocated to IT BudgetSenior IT Leader
Percentage of Revenue Allocated to IT Budget2013: 332 Responses 2013 Median 2.24%
4.94% 4.95%
3.96% Avg. of yearly averages
3.60% 3.60% 3.50%3.82% 3.83% 3.87%
3.55%
3.96% Avg. of yearly averages
2005 2006 2007 2008 2009 2010 2011 2012 201329
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
IT Spending as a Percent of Total Revenue (in US $)Senior IT Leader – Percent Responding
p g ( $)
10%>10%
3%
3%
2%
7‐8%8‐9%9‐10%>
>
> In 2013: 23% spend more than 5% on IT48% spend 2% or less on IT
4%
2%
3%
5‐6%6‐7%7 8%
>
>> 48% spend 2% or less on IT
11%
9%
9%
2 3%3‐4%4‐5% Avg. = 4.95%
>>
>
Median = 2 24%
10%
12%
11%
1‐1.5%1.5‐2.0%
2‐3%>
>
> Median = 2.24%
7%
14%
10%
.1‐.5%.5‐1%1 1.5%>
>
30
4%0‐.1%332 Responses
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
What going on with IT hiring and salaries?
Senior IT Leader% Ch i N b f I t l IT E l (FTE )
13%10
% Change in Number of Internal IT Employees (FTEs)
13%
7%
9%
10%
10 or >
5‐92013: 47% up, 23% down2014: 55% up, 18% down
8%
19%
10%3‐4
1 225%
26%
27%
1‐2
013%
5%
11%‐1 and ‐2
‐3 and ‐45%
4%
2%
‐3 and ‐4
‐5 to ‐9 Actual 2013‐2012375 Responses
32
5%1%‐10 or < Projected 2014‐2013365 Responses
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Senior IT Leader
% Changing Number of Internal IT FTEs% Changing Number of Internal IT FTEsProjected Change 2013‐14Actual Change 2012‐13
375 Responses 365 Responses
18%28%
55%
47%
55%27%
25%25%
Average increase2013 1 10%
33
Increasing No Change Decreasing2013: 1.10%2014: 1.75%
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Senior IT Leader – Percentage Responding‘13 Actual & ‘14 Projected13 Actual & 14 Projected
% Change in Average IT Salary2%
5%1%10% or >
5 9%
2013: 89% up, 4% down2014: 90% up, 4% down5%
38%6%
43%
5‐9%
3‐4%
p,
44%
7%40%
6%
1‐2%
No change2%
0%
6%
1%
g
‐1 and ‐2%
3 d 4% 0%
1%1%
1%
‐3 and ‐4%
‐5 to ‐9%2012‐20132013‐2014
352 Responses
351 Responses
34
1%1%‐10% or <
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Senior IT Leader
% Changing Average IT Salary% Changing Average IT SalaryActual 2012 to 2013 Projected 2013 to 2014
4%7%
4% 6%
352 Responses 351 Responses
89%90%
Average increase2013: 2 24%
35
Decrease No Change Increase2013: 2.24%2014: 2.45%
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Senior IT Leader – Percentage Responding
2013 Actual & 2014 Projected2013 Actual & 2014 Projected
% Change Total IT Salary5%
7%2%10% or >
5 9%
2013: 83% up, 7% down2014: 86% up 5% down7%
36%9%
41%
5‐9%
3‐4%
2014: 86% up, 5% down
35%
9%34%1‐2%
No change2%
8%
2%
No change
‐1 and ‐2%1%
1%1%
1%
‐3 and ‐4%
‐5 to ‐9%2012‐20132013‐2014
369 Responses
2%1%
1%‐10% or <
2013‐2014 365 Responses
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Senior IT Leader ‐ 2013 Actual & 2014 Projected
% Changing Total IT SalaryDecrease No Change Increase
% Changing Total IT Salary
5%9%
7%
10%
86%83%
Average increaseAverage increase2013: 2.29%2014: 2.45%
37369 Responses
Actual 2012‐2013 Projected 2013‐2014365 Responses
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Senior IT Leader – Percentage Responding
% Changing Total IT Salary 2008‐13 Actual 2014 Projected
90%
100%
% Changing Total IT Salary 2008 13 Actual, 2014 Projected
70%
80%
90%
50%
60%
70%
30%
40%
50%
10%
20%
0%2014
Projected201320122011201020092008
I N Ch D
38369 Responses for Actual 2013 and 365 for Projected 2014
ProjectedIncrease No Change Decrease
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
IT St ff T R t 2006 t 2013Senior IT Leader
IT Staff Turnover Rate 2006 to 2013
39(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
% IT Budget Allocation for Education/TrainingSenior IT Leader
4.68%
% IT Budget Allocation for Education/Training
3.48% 3.23%3.47% Avg. of yearly
3.09%2.87%
averages
40
2009 2010 2011 2012 2013408 Responses
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
How are organizations spending their IT budgets?
Senior IT Leader – Allocation of IT Budget2014‐Budget estimated 2013‐Budget actual
33
Consulting services
2014 Budget estimated 2013 Budget actual314 Responses281Responses
P
4
5
4
Outsourced Services/
Outsourced Services/Contractors offshore
• Almost 53% of 2013 IT budget goes to people
PEO
2
6
2
5
Internal IT staff offshore
Outsourced Services/Contractors domestic
g g p p• Average spent on people 2009‐13 = 60.8%
OPL
38
2
37Internal IT staff domesticE
T2
2
2
HW/SW/Bldgs/I h ff h
HW/SW/Bldgs/Outsourced offshore
THI
8
2
9HW/SW/Bldgs/Outsourced domestic
In‐house offshoreING
42
3534HW/SW/Bldgs/
In‐house domestic
GS(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Allocation of IT Budget:Is increasing % to things vrs people a trend?
2014
2009‐13 average: people vs.
Is increasing % to things vrs. people a trend?
IT Budget Area2014
Projected 2013 2012 2011 2010 2009people vs. things
PeopleEmployees / Internal Staff: Domestic 37.1% 38.3% 34.0% 38.0% 43.0% 39.0%
Offshore 2.2% 2.0% 6.0% 2.0% 3.0% 4.0%Outsourced Services/Contractors: Domestic 5.5% 5.7% 8.0% 3.0% 7.0% 8.0%
Offshore 4 2% 3 8% 3 0% 2 0% 5 0% 4 0%4.2% 3.8% 3.0% 2.0% 5.0% 4.0%Consulting Services 3.1% 3.1% 9.0% 11.0% 10.0% 12.0%
52.1% 52.9% 60.0% 56.0% 68.0% 67.0% 60.8%
Thi H d S ft F iliti
Does this look like a trend?
Things: Hardware, Software, FacilitiesIn-house - domestic 34.2% 35.0% 24.0% 32.0% 32.0% 33.0%In-house – offshore 2.1% 1.9% 2.0% * * *
O t d d tiOutsourced - domestic 9.3% 8.3% 14.0% 12.0% * *Outsourced - offshore 2.4% 1.9% * * * *
47.9% 47.1% 40.0% 44.0% 32.0% 33.0% 39.2%Does this look like a trend?
43
* indicates category not used in that year. Responses: 2013 actual 314, 2014 projected 281
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Allocation of IT Budget:Is increasing % to things vs people a trend
80%
Is increasing % to things vs. people a trend, sample differences, or “catch up” investments?
67% 68%70%
80%PeopleThings
67% 68%
60%60%
70%
Average 2009 – 2013 60.8%
56%53% 52%
50%
60%
?44%47% 48%
40%
50%
Average 2009 2013 39 2%
?33% 32% 40%
30%
40% Average 2009 – 2013 39.2%
44
30%2009 2010 2011 2012 2013 2014
Projected(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Senior IT Leader – Allocation of 2013 IT BudgetOff‐Shore9.6%
Outsourced 22 9%22.9%
Internal
Domestic 90.4%
77.1%
>77% of IT budget is spent in‐house.>90 of IT budget is spent domestically.
45
314 Responses
>90 of IT budget is spent domestically.
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Senior IT Leader – Allocation of 2013 IT BudgetOutsourced Offshore, 5 7%
In‐house Offshore, 3 9%5.7% 3.9%
Outsourced OffshoreIn house Offshore
Outsourced Domestic,
In‐house OffshoreOutsourced DomesticIn‐house Domestic
314 ResponsesDomestic, 17.2%
In‐house
p
In house Domestic, 73.2%
• 90.4% of IT budget is spent domestically, 9.6% offshore.• 77.1% of IT budget is spent in‐house.
46
77.1% of IT budget is spent in house.• 22.9% is outsourced, but only 5.7% is outsourced offshore.
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
% IT Budget for Offshore Outsourcing (People/Things)Senior IT Leader
6.6%
% g g ( p / g )
5.0% 5.0%
5.7%
4.2% 4.0%
3 3%
4.0%4.15% Avg. of
1 7%
3.3%
2.0%
Avg. of yearly averages
1.7%
47
Actual 2013 and Projected 2014: 314 Responses
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
What are the • most user IT performance measures,
• most important IT management issues• most important IT management issues,
• largest IT investments, and the g ,
• things keeping IT leadership up at night?
How is performance measured for in‐house and
d I ?outsourced IT?
Most Used Metrics for Internal ITSenior IT Leader: Top 3 in Your Organization
2013 2012
1 Projects delivered on time 11 Projects delivered on time 1
2 Projects delivered on budget 2
3 I d / li i f i3 Increased customer/client satisfaction 5
4 SLA targets 3
5 Productivity improvement 6
6 Project ROI 4
7 Increases in new products/services 8
8 Innovative ideas 108 Innovative ideas 10
9 Lower error rates 13
10 I d d i i ki 9
50
10 Improved decision making 9
276 Responses 195 Responses(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Used Most Metrics for Outsourced ITSenior IT Leader: Top 3 in Your Organization
Outsourced2013
Internal 2013
P j t d li d ti 1 1Projects delivered on time 1 1projects delivered on budget 2 2Increased customer/client satisfaction 6 3/SLA targets 3 4Productivity improvement 4 5P j t ROI 5 6Project ROI 5 6Increases in new products/services 8 7Innovative ideas 9 8Lower error rates 7 9Improved decision making 12 10R h 10 11Revenue growth 10 11Industry specific measurements 11 12ROE 13 133Earnings per share 14 14
226 Responses 276 Responses(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
“Three IT Metrics Used Most for Internal & Outsourced IT”Figure 15: Performance Measures Used for Internal and Outsourced IT, 2012-2013
Metrics Used======= Internal IT ======= ** Outsourced IT **
2013 % 2013 2012 2013 % 2013
P j t d li d ti 1 65 9% 1 1 73 9% IT OPERATIONAL
Senior IT Leader
Projects delivered on time 1 65.9% 1 1 73.9%
Projects delivered on budget 2 49.6% 2 2 66.4%
Increased customer/client satisfaction 3 33.3% 5 6 14.6%
SLA targets 4 30.1% 3 3 51.3%
IT OPERATIONAL
ORGANIZATIONAL
Productivity improvement 5 28.6% 6 4 19.5%
Project ROI 6 24.3% 4 5 16.8%
Increases in new products/services 7 13.0% 8 8 7.5%
Innovative ideas 8 11.6% 10 9 5.8%STRATEGIC
Lower error rates 9 8.3% 13 7 12.4%
Improved decision making 10 7.6% 9 12 1.8%
Revenue growth 11 7.3% 7 10 3.1%
Industry specific measurements 12 2 9% 11 11 2 2%Industry specific measurements 12 2.9% 11 11 2.2%
ROE 13 1.5% 12 13 0.4%
Earnings per share 14 0.4% 14 14 0.0%
O i ti di 276 195 226Organizations responding 276 195 226
• On‐time Project: internal #1 (66%), external #1 (74%) • In‐budget Project: internal #2 (50%), external #2 (66%) • SLA Targets: internal #4 (30%), external #3 (51%)
• On‐time Project: internal #1 (66%), external #1 (74%) • In‐budget Project: internal #2 (50%), external #2 (66%) • SLA Targets: internal #4 (30%), external #3 (51%)C S i f i i l #3 (33%) l #6 (14%)
• On‐time Project: internal #1 (66%), external #1 (74%) • In‐budget Project: internal #2 (50%), external #2 (66%) • SLA Targets: internal #4 (30%), external #3 (51%)C S i f i i l #3 (33%) l #6 (14%)
Senior IT Leader: T 3 i Y O i ti
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
• Customer Satisfaction: internal #3 (33%), external #6 (14%)• Improved Decision Making: internal #6 (8%), external #12 (2%)• Innovation: internal #8 (12%), external #9 (6%)• Revenue Growth: internal #11 (7%), external #10 (3%)
• Customer Satisfaction: internal #3 (33%), external #6 (14%)• Improved Decision Making: internal #6 (8%), external #12 (2%)
Top 3 in Your Organization
What are your organization’s largest / most significant IT i t t ?investments?
Which of these IT investmentsWhich of these IT investments keep IT leaders up at night?p p g
Top 10: Organization’s Largest/Most Significant IT InvestmentSenior IT Leader – 2013 – Percent Responding
Top 3 in Your Organization?
54
483 Responses
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Senior IT Leader ‐ Top 10 Organization’s Largest/Most Significant IT Investment
2013 20121 Analytics / Business Intelligence 11 Analytics / Business Intelligence 12 Customer Relationship Management 53 Cl d C i ( S S P S I S) 23 Cloud Computing (e.g., SaaS, PaaS, IaaS) 24 Enterprise Resource Planning 35 Big Data 106 [Mobile] Apps 67 Enterprise Application Integration 88 Network / Telecommunications 128 Network / Telecommunications 129 Customer / Corporate Portals 1610 B i P M t S t 9
55
10 Business Process Management Systems 9483 Responses 195 Responses
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Your Organization’s Largest /Most Significant IT Investments, 2003-2013 (1)
Senior IT Leader – 2013g g g , ( )
2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003
Analytics / Business Intelligence 1 1 1 1 1 2 2 2 3 2 1
Customer Relationship Management 2 5 5 9 13Customer Relationship Management 2 5 5 9 13
Cloud Computing (e.g., SaaS, PaaS, IaaS) 3 2 2 5 17
Enterprise Resource Planning 4 3 3 3 3 14 6 5
Big Data 5 10Big Data 5 10
[Mobile] Apps 6 6 4 9 24
Enterprise Application Integration 7 8 9 18 5 12 32 3
Network / Telecommunications 8 12Network / Telecommunications 8 12
Customer / Corporate Portals 9 16
Business Process Management Systems 10 9 16 12
Disaster / Recovery 11 13 14 4 6 3 4Disaster / Recovery 11 13 14 4 6 3 4
Collaboration Tools 12 4 8 7 7
Virtualization 13 15 7 2
Security 14 11 8Security 14 11 8
Enterprise Architecture 15
(1) Blank cells indicate that the issue was not asked about in that year of the survey. 2013: 483 Responses
Fell off Top 10 (2012 to 2013):
56
Fell off Top 10 (2012 to 2013):• Collaboration Tools (4th to 12th)• BYOD (7th to 21st) but #5 most personally worrisome investment of same 483
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Greatest Concern Org’s Largest IT I
Senior IT LeadersIT Investments – 3 Greatest Concerns/Worries to YOU
2013 2013 2012
1 Analytics / Business Intelligence 1 1
to You IT Investment This question was asked for the first time in 2013.
1 Analytics / Business Intelligence 1 1
2 Security 14 ‐‐
3 Di t / R 11 133 Disaster / Recovery 11 13
4 Cloud Computing (e.g., SaaS, PaaS, IaaS) 3 2
5 BYOD (Bring Your Own Device) 21 7
6 Enterprise Architecture 15 ‐‐
7 Enterprise Application Integration 20 8
8 Legacy Applications 17 208 Legacy Applications 17 20
9 Enterprise Resource Planning 4 3
10 C t R l ti hi M t 2 5
57
10 Customer Relationship Management 2 5483 Responses 195
Responses483
Responses(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Comparison of Organizational and Personal Viewpoints on IT Investments
Most Important/Worrisome to Senior IT Leader
Largest IT Investments for the
OrganizationTechnology / Application
1 1 Analytics / Business Intelligence2 14 Security3 11 Disaster Recovery3 11 Disaster Recovery4 3 Cloud Computing (e.g., SaaS, PaaS, IaaS)5 21 BYOD (Bring Your Own Device)6 15 E t i A hit t6 15 Enterprise Architecture7 20 Enterprise Application Integration8 17 Legacy Applications9 4 Enterprise Resource Planning10 2 Customer Relationship Management
Big investment big project but been there done that
Relatively small investment, relatively big risk
l i l ll i l i l bi b fi
Big investment, big project, but been there, done that.
58
Relatively small investment, relatively big benefit
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
What are the most importantWhat are the most important IT management issues to gorganizations?
And which of these issues areAnd which of these issues are most important or worrisome pto their IT leadership?
Your Organization’s Top 10 Most Important IT Management Concerns/IssuesSenior IT Leader ‐ % Responding
43.7%Alignment of IT and / with the business
27.5%
23.4%
Business Agility
Business Productivity 23.4%
18.6%
y
Business Cost Reduction / Controls
16.8%
16.1%
IT Cost Reduction / Controls
Time‐to‐Market / Velocity of Change
11.2%
10.8%
Security
IT Service Delivery 10.8%
10.6%
IT Service Delivery
IT Efficiency
60
9.9%Revenue Generating IT Projects483 Responses
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Most Important IT Management Concerns/Issues to Your Organization
Senior IT Leader – Top 10
2013 2012
1 Alignment of IT and/with the business 21 Alignment of IT and/with the business 2
2 Business Agility (1) 3
3 B i P d i i ( ) 13 Business Productivity (2) 1
4 Business Cost Reduction / Controls (2) 1
5 IT Cost Reduction / Controls 5
6 Time‐to‐Market / Velocity of Change (1) 3
7 Security (previously combined with Privacy) 9
8 IT Service Delivery* ‐‐8 IT Service Delivery
9 IT Efficiency (previously combined with IT Reliability) 10
10 R G ti IT P j t 4
61
10 Revenue Generating IT Projects 4
*New question for 2013; (1) and (2) were combined in prior years483
Responses195
Responses
Your Organization’s Most Important IT Management Concerns/IssuesSenior IT Leader 483 Responses
Organization’s Top IT Management Concerns/Issues
2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Aligning IT with Business 1 2 1 3 2 1 2 1 1 1Aligning IT with Business
Business Agility 2 3 2 2 3 13 17 7 5
Business Productivity 3 1 4 1 1 7 4
Business Cost Reduction & Controls 4 Combined with “Business Productivity” in prior years.
IT Cost Reduction & Controls 5 5 10 8 5 7 4
Ti T M k t / V l it Of Ch 6 bi d i h “ i ili ” i iTime To Market / Velocity Of Change 6 Combined with “Business Agility” in prior years.
Security 7 9 8 9 9 8 6 3 2 3
IT Service Delivery 8 Newy
IT Efficiency 9 10 6 3 6 Previously combined with “IT Reliability”
Revenue Generating IT Innovations 10 4 9 6 8 17
Fell off Top 10 (2012 to 2013):• Business Process Re‐engineering (3rd to 12th)• IT Strategic Planning (6th to 15th)
62
IT Strategic Planning (6 to 15 ) • Enterprise Architecture (8th to 21st) but #6 most worrisome investment of same 483
• Sign of shift to more tactical, operational, and measurable objectives?(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Your Most Impt. or Worrisome
3 Most Important/Worrisome to YOU Org’s MostI t t
Senior IT Leader – Top IT Management Concerns/Issues
or Worrisome
2013 2013
1 Alignment of IT and / with the business 1
ImportantThis question was asked for the first time in 2013.
1 Alignment of IT and / with the business 12 Security 73 T l / Skill Sh 163 Talent / Skill Shortage 164 Business Continuity / Disaster Recovery 145 Prioritization Process for IT Projects 116 Business Agility 2
v
7 IT Service Delivery 88 Change Management 198 Change Management 199 Time‐to‐Market / Velocity of Change 610 CIO L d hi R l 23
63
10 CIO Leadership Role 23483 Responses 483 Responses
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Most Important Management Concerns/IssuesSenior IT Leader ‐ Divergence
To your OrganizationMost Important / Worrisome To YOU Ratio =
Most Important Management Concerns/Issues
Worrisome To YOU Ratio (IT Leader/Org)Concern/Issue Rank % Respondents Rank % Respondents
Alignment of ITAlignment of IT and/with business
1 43.69% 1 32.30% 73.93%
%Business Agility 2 27.54% 6 15.32% 55.64%
i d i i 3 23 0% 6 2 % 30 97%Business Productivity 3 23.40% 16 7.25% 30.97%
Business Cost 4 18 63% 22 5 38% 28 89%Reduction / Controls4 18.63% 22 5.38% 28.89%
IT Cost Reduction / 5 16 77% 13 8 28% 49 38%
64
/Controls
5 16.77% 13 8.28% 49.38%
483 Responses(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Bottom Line: 2013 SIM IT Trends Survey • Positive things happening in IT: More organizations raising IT
budgets, salaries, & headcounts; IT budgets high as % revenue; >90% of IT spending domestic.
• Positive for IT professionals too: CIO tenure, IT hiring, salaries, turnover, & IT budgets for training all up; >20% IT leaders say “shortage of skills” keeps them up at night.
d k ll k ll• Uncertainty and economic weakness still taking a toll: 27% cutting IT budgets, 23% cutting IT employment, 7% reducing total IT salaries 4% cutting IT average salariesIT salaries, 4% cutting IT average salaries.
• Both organizations and senior IT leaders are focused on more tactical and operational issues and investments.tactical and operational issues and investments.
• IT appears fairly resilient and generally seen as “part of the solution” during these still challenging times.g g g
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
Next Steps?• Deeper analysis to explore and better understand …Deeper analysis to explore and better understand …
– Differences by industry, size, organizational and individual characteristics
– Divergence between personal and organizational priorities and concerns• Do performance measures or to whom CIOs report make a difference?
• Does the frequency and quality of CIO’s C‐level interactions make a difference?
• Does how IT leaders spends their time or how IT is organized make a difference?
– Differences between current CIOs and next generation of CIOs
• Get ready for 2014 and the 35th Annual SIM IT Trends Survey– New questions and perhaps some periodic rotation of questions.
• “Alignment” ‐ 34 years as a top key issue ‐ Right concept? Or do we need a “paradigm shift” in our thinking about IT and its customer, the business?
– Better data management for better analytical and longitudinal research.
• Deeper dive into IT skills shortage. • Insourcing? • Turnover, voluntary or involuntary? • CIO role in strategic planning?
– Arrange for sponsors and more prizes to hopefully get more responses.
• So until next time, “may the wind always be at your back, may the sun shine warm upon your face,” and may your uptime be 100% 24/7/365!
(c) 2013 SIM International, Leon Kappelman, PhD, Primary Investigator
34th Annual Society for Information Management’s
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